The transfer is meant to assist the delta-hedged artificial greenback scale by accessing the Bitcoin futures market.
Ethena Labs is including Bitcoin as a collateral asset for its USDe artificial greenback as a strategic step to reinforce scalability.
USDe has grown quickly since launching an airdrop marketing campaign earlier this 12 months, with its complete worth locked (TVL) now approaching $2 billion. This has resulted in Ethena’s brief futures positions, that are used to hedge the protocol’s ETH publicity, ballooning to twenty% of complete Ether open curiosity, in line with the mission.
Ethena goals to faucet into the substantial liquidity and elevated scaling potential provided by BTC by-product markets, estimating that the transfer may allow it to scale USDe by 250%.
The mission’s newly launched ENA token is buying and selling at round $1, giving it a market capitalization of $1.5 billion.
The crew famous that whereas BTC doesn’t supply a local staking yield like ETH, it compensates with its superior liquidity and length profile. Moreover, in a bull market the place funding charges exceed 30%, staking yields grow to be much less important.
By including BTC as a backing asset, Ethena expects to bolster the scalability and total stability of USDe. The BTC integration will likely be mirrored in Ethena’s dashboards beginning tomorrow.
